New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-16
TILE WHEAT COLLAPSE.

There Is not the least occasion for surprise
in the dramatic collapse Of The wheat corner
at Chicago The nominal value Of wheat in
stock changed about So 100000 in single
day. while on 1OO.OOO,OOO bushels sold at
Chicago and 10000, 900 bushels at New Y orll
in a single day, the change in nominal value
involved the transfer of far larger sum from
one set of Spectators to another. But there
has been no reason to expect any other result
The clique calculated rightly In regard to the
large foreign demand for wheat, but from the
first miscalculatcd wildly in regard to the
quantity available in this country for export.
The preliminary report of exports in May
has lust been issued. 1t shows that {, S19,225
bushels of wheat and 75S, 4S1 barrels of -four
went abroad, equivalent to II ,3o9 bushels
Of wheat against IL ,4SS,SS1 In the same
month last year. The average value OF the
wheat exported was 94.S cents per bushcl.
which proves that the recent quotation OF "
to 90 cents for cash wheat mt Chicago was
purely fictitious. In May, when the clique
was holding the price there at SO cents, more
or less, not bushel could pay charges to the
seaport and yet millions of bushels were
shipped to foreign countries, in part by the
CLIQUE itself and at loss, in order to realize
money for carrying the constantly Increasing
supply offered. But looking at actual exports
it appears that the net exports of wheat In ten
months preceding May had amounted 10
125.167.74S bushels, -four included, so that
with the May shipments. foreign markets had
taken from us 1877 AGO, 137 bushels, against
81 764. APO bushels for eleven months of the
previous year. Even now exporters are buying
considerable quantities Whenever the market
yields
The fatal error in this speculation was In
Understanding the quantity available IN this
country Months ago it was shown, In lottcIs
published by The TRIBUNE, that including the
large quantity brought over from the previous
wear. the surplus available for export up to
July l would be about 19S, 100000 bushels.
That meant, of course, that the quantity OF
wheat in the hands of farmers and dealers In
the interior was greater by many million bush
els than the clique cstmatca. They chose TO
test the accuracy of their estimates by stalking
millions of their own and millions borrowed.
The result is a collapse, in which many limo
cent persons suffer severely with those who are
responsible for maintaining an artificial mar
kct. Wheat has kept coming in vast quantities.
and even on the day Of the break it was said
that 900 carloads were to be received at Chi
cago, while 100000 bushels or more awaited
storage The visible supply exceeded
10000 900 bushels, besides all the wheat in
farmers hands and country elevators, and
all the flour on hand.
The immediate effect Of this collapse is to
set free some money which has been employed
In wheat speculation, but not nearly so much
as is usually imagined. The quantity of wheat
in commercial markets has not changed since
last Saturday, and the only difference In the
amount Of money required to carry that &C
emulation Is duo to the decline in price.
The substantial consequence Of the great spec
ulation is that the country has to carry over.
at a heavy charge to its financial resources.
about 100000 bushels of wheat, much of
which might have been marketed abroad had
prices been allowed to find their natural level.
Most of this surplus has been transferred
from farmers TO dealers in Chicago and other
commercial cities and so has TO be carried
by the resources of commercial centres. The
effect will be seen in less demand for the new
wheat which farmers are about TO offer.